Written by Brent A. Ford
Why You Won’t Gain an Accurate Understanding of the Markets by Looking at Main Street
The pandemic gripping the globe since early last year is beginning to abate. Over the coming years, there will be many lessons learned, but for now, one important lesson for investors to learn is that the stock market and Main Street are not one and the same. Making decisions based on that assumption can have profound negative effects on a portfolio.
Think back to mid-February 2020: The market hit all-time highs on good economic news, like increasing corporate profits, low unemployment, and increasing wage growth. The US economy seemed to be firing on all cylinders. About the same time, it was becoming apparent that the virus spreading in cities in China, and then Europe, was increasingly likely to make it to our shores.
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